Correlation Between OTP Bank and Public Service
Can any of the company-specific risk be diversified away by investing in both OTP Bank and Public Service at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining OTP Bank and Public Service into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OTP Bank Nyrt and Public Service Enterprise, you can compare the effects of market volatilities on OTP Bank and Public Service and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in OTP Bank with a short position of Public Service. Check out your portfolio center. Please also check ongoing floating volatility patterns of OTP Bank and Public Service.
Diversification Opportunities for OTP Bank and Public Service
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between OTP and Public is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding OTP Bank Nyrt and Public Service Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Service Enterprise and OTP Bank is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on OTP Bank Nyrt are associated (or correlated) with Public Service. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Service Enterprise has no effect on the direction of OTP Bank i.e., OTP Bank and Public Service go up and down completely randomly.
Pair Corralation between OTP Bank and Public Service
If you would invest 1,259,000 in OTP Bank Nyrt on October 10, 2024 and sell it today you would earn a total of 0.00 from holding OTP Bank Nyrt or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OTP Bank Nyrt vs. Public Service Enterprise
Performance |
| Timeline |
| OTP Bank Nyrt |
| Public Service Enterprise |
OTP Bank and Public Service Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OTP Bank and Public Service
The main advantage of trading using opposite OTP Bank and Public Service positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OTP Bank position performs unexpectedly, Public Service can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Public Service will offset losses from the drop in Public Service's long position.| OTP Bank vs. AMG Advanced Metallurgical | OTP Bank vs. Bytes Technology | OTP Bank vs. Take Two Interactive Software | OTP Bank vs. Air Products Chemicals |
| Public Service vs. Tavistock Investments Plc | Public Service vs. Amedeo Air Four | Public Service vs. Sealed Air Corp | Public Service vs. New Residential Investment |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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